Google's TPUs

Last week, the Nvidia share price wobbled on news that Google developed an AI supercomputer with better performance than Nvidia's competing systems. At the moment, Nvidia is the only game in town when it comes to running AI programs. It currently controls about 90% of the market.

Google developed its own chips, Tensor Processing Units or TPU's, to use in the AI supercomputer. When the chip was designed in 2020, it was up to 1.7 times faster and had 1.9 times more power-efficient than a system based on Nvidia's A100 chip. Since then, Nvidia has released the H100, returning it to the performance lead.

Having competition is good for the sector and the consumer. It also helps that Vestact clients own both Google and Nvidia.